What does the term 'Rights' refer to in the B Bops Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
endix I hereto. |
For purposes of this Agreement, the rights applied for in this Section 1 shall be referred to as the "Rights" and the trade area described in Appendix I hereto shall be referred to as the "Trade Area".
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- Applicant has deposited with Company the sum of $5,000 to cover certain expenses to be incurred by Company in: (i) reviewing Applicant's application for the Rights; (ii) reviewing prospective sites submitted by Applicant for approval; and (iii) providing such additional assistance or information as Company may in its discretion deem appropriate to enable Applicant to determine its interest in providing the Rights. For purposes of this Agreement, the deposit specified above shall be referred to as the "Deposit". Applicant agrees that the Deposit shall not bear interest and that it may be co-mingled with other Company funds.
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- Company agrees that within ninety (90) days of the effective date of this Agreement (which period may be extended by Company in its sole discretion), Company will inform Applicant in writing whether Applicant will be granted the Rights. Applicant acknowledges and understands that while Company agrees to consider Applicant for the Rights, Company shall have absolute discretion in determining whether to grant the Rights to Applicant. Applicant further acknowledges that Company's determination of whether to grant the Rights to Applicant will depend on a number of factors, including, but not limited to: (i) Applicant's character and business background; (ii) Applicant's financial resources and ability to obtain acceptable financing; (iii) location of an acceptable premises for operation of the business; (iv) negotiation of an acceptable agreement for the lease or purchase of such premises; and (v) Applicant's ability to secure all necessary permits and/or licenses for operation of the business. Applicant agrees to use Applicant's best efforts during the term of this Agreement to arrange
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financing, to select proposed sites to be submitted to Company for approval and to take such other actions as may be necessary to place Applicant in a position to purchase the Rights, if the Rights are granted by Company. Applicant acknowledges that Applicant shall be solely responsible for arranging all financing and selecting and securing sites acceptable to Company.
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- APPLICANT UNDERSTANDS AND AGREES THAT NOTHING CONTAINED IN THIS AGREEMENT OBLIGATES COMPANY TO GRANT APP
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the term 'Rights' in the Application Agreement refers to the rights applied for in Section 1 of the agreement. These rights pertain to the potential purchase of a B Bops Restaurant in a specific trade area.
The Application Agreement outlines the initial steps an applicant takes to be considered for a B Bops franchise. As part of this process, the applicant pays a $5,000 deposit to cover B Bops's expenses for reviewing the application, evaluating potential sites, and providing assistance to help the applicant determine their interest in obtaining the Rights. However, the agreement explicitly states that B Bops is not obligated to grant the Rights to the applicant.
The determination of whether to grant the Rights is at B Bops's absolute discretion and depends on various factors, including the applicant's background, financial resources, site location, lease agreement, and ability to secure necessary permits and licenses. If B Bops decides not to grant the Rights, the applicant is entitled to a refund of the deposit, minus certain expenses incurred by B Bops. This refund is contingent upon the applicant returning all confidential information provided by B Bops.